Boeing strike could drag on as workers push for higher wages, union leader says
Adds details, quotes, paragraphs 3-10
SEATTLE, Sept 14 (Reuters) -A strike at Boeing "could go on for a while" as workers are confident they can get bigger wage increases and an improved pension, union leader Jon Holden said in an interview with National Public Radio (NPR)on Saturday.
More than 30,000 members of the International Association of Machinists and Aerospace Workers (IAM), who produce Boeing's top-selling 737 MAX and other jets in the Seattle and Portland, began a strike on Friday after overwhelmingly voting down a new contract.
Boeing and union negotiators are due to return to the bargaining table next week, in talks overseen by U.S. federal mediators, after more than 94% of workers voted to reject an initial contract offer that Holden had endorsed.
Holden said the priorities for his members were a bigger wage increase and the restoration of a defined-benefit pension scheme that the IAM lost during a previous round of negotiations with Boeing a decade ago.
"We have the most leverage and the most power at the most opportune time that we've ever had in our history, and our members are expecting us to use it," Holden told NPR.
"I know that our members are confident. They're standing shoulder to shoulder and they're ready. So it (the strike) could go on for a while."
The initial deal included a 25% pay rise spread over four years and a commitment by Boeing to build its next commercial jet in the Seattle region, if the plane program was launched within the four-year period of the contract.
Union members, venting frustration at years of stagnant wages and rising living costs, said removal of a performance bonus in the Boeing offer would erode half of the headline salary increase.
Boeing's stock fell 3.7% on Friday. It has tumbled almost 40% so far this year, slashing the company's market value by roughly $58 billion
A long strike could further damage Boeing's finances, already groaning due to a $60 billion debt pile. A lengthy pause on plane production would also weigh on airlines that fly Boeing jets and suppliers that manufacture parts.
Reporting by Joe Brock; Editing by David Gregorio
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
